15% of CSR budget remained unspent in FY18

Although the CSR budget has been in line with the government’s norm, the unspent budget is concerning

FY14 FY15 FY16 FY17 FY18E
Average 3-year net profit of companies ~INR 3,90,000 Cr ~INR 4,20,000 Cr ~INR 4,53,000 Cr ~INR 4,80,000 Cr ~INR 5,30,000 Cr
Total CSR budget as perecentage of profits ~2.0% ~2.2% ~2.3% ~2.2% ~2.2%
Unspent budget as a percentage of total CSR funds raised ~26% ~28% ~18% ~15% ~15%

Sources: PRIME Database; Bain analysis; "A Comparative Study of CSR Practices in India Before and After 2013." Asian Journal of Management Research, 2017

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